Global Chips Shortages Cost JLR £320m

The global shortage of microchips has impacted Jaguar Land Rover’s (JLR) sales volumes, which have fallen by nearly half in the three months to the end of September, compared to the same period in 2020.

This Is Money reports that the Q3 loss of £302 million compares with a profit of £65 million for Q3 in 2020. However, JLR says that demand has remained strong, with global orders for vehicles from retail customers standing at an all-time high of 125,000.

The luxury car manufacturer, owned by India’s Tata Motors, said that the chip shortage ‘remains dynamic and difficult to forecast’, but it expects to see a gradual recovery during the second half of the financial year.

JLR also reported that sales of electric vehicles, including hybrids, had increased to 66 per cent in the last quarter. The company has supplied a fleet of electric vehicles for the COP26 climate conference in Glasgow.

The firm saw the volume of wholesales to dealerships fall by 12.8 per cent year-on-year to 64,032 while direct retail sales dropped by 18.4 per cent to 92,710.

The UK suffered the biggest hit to retail sales, with a decline of 48 per cent, while the North American market saw a decline of 16 per cent.

JLR said retail sales of all models were lower year-on-year except for the new Land Rover Defender, which sold 16,725 vehicles, up 70 per cent.

The global chip shortage has impacted car manufacturers all around the world, as well as technology firms such as Apple and Sony.

Industry figures from last week showed the number of cars built in the UK fell to their lowest September level since 1982 amid the shortage.

 

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